Stepping Back In,
Mutual Funds
Now See 'Value'

Many Portfolio Managers Shift
Out of Cash and Into Stocks;
Not Everyone Sees the Bargains

By

Diya Gullapalli

Updated Aug. 4, 2006 12:01 a.m. ET

Managers of "value" mutual funds can be a finicky bunch when it comes to investing, because their goal is to buy stocks on the cheap. A year ago, many were sitting on record piles of cash and saying that stocks were overvalued.

Now, they appear to be diving back in. In recent months, some value-fund managers have started pouring cash back into the market. For individual investors, it marks an important shift because it...